My Two Favorite Sectors for Wednesday

Good evening traders,

Hard to believe the markets are only a few points away from hitting a 52-week high, even with all the downside we saw in August. This has me really excited about my upcoming trades and I’d like to share a few ideas with you below.

But before I do….

Did Fed Waller just signal a rate pause?

Is oil headed back to $100?

Whether it’s rate hikes, rate pauses, or oil moving higher, one thing is for certain: the markets are moving right now. Exactly what I like to see.

Educational Lesson

What are “Call” options? A call option is a trade you would make if you felt the entity you’re trading is going to move higher. It’s essentially the same as a stock trader trading the markets “Long.” Trading calls means you’re bullish.

What are “Put” options? A put option is a trade you would make if you felt the entity you’re trading is going to move lower. It’s essentially the same as a stock trader shorting the market. Trading puts means you’re bearish.

Market Navigator Update

While today produced a mostly red or flat day, I am still leaning towards markets moving higher. We have important data coming this week such as Wednesday morning 9:45am PMI and Thursday morning 8:30am jobless claims.

Based on the article above from Fed Waller, I believe if these two items “come in line” with expectations, then markets could push higher. With this in mind, my focus this week will be on the potential for SPY to challenge the $456 and $458 areas. I am only bearish on SPY if these two data pieces give markets fear of increasing inflation or stronger job markets than what the Fed wants to see. Therefore, I am mostly looking to play calls this week for a SPY move higher.

Atomic Trades Update

The two sectors that have caught my attention this week are Energy and Pot. The XLE which tracks the Energy sector ETF is breaking a multi-year high and I think XLE to $100 makes a lot of sense. From this, I am watching stocks like WTI for a possible run at $5s and MRC for continuation of last week's strong move and continuation into the gap toward $11 from early August.

For pot stocks, I like CGC on a higher high and higher low daily chart pattern for a move toward $1. This stock has had a lot of momentum and news as of late with a few volume spikes of 100 million shares plus per day.

Right now, I am targeting SPY options trades just like the one below with a goal of 10 to 20% within the same day, rinse and repeat.

For more information on options trade ideas like this, here’s my #1 morning SPY options trading service - for as little as $147 right now - take a look inside right here.

However, if you like HOT penny stocks, then Atomic Trades is your service. With only 1-3 swing trades at a time and a 20% focus on stocks or 30 to 50% on low priced options, just like this one:

My end of the day “power hour” live stock scan and trade alerts are available for as little as $147! Click here for more details.

P.S. Feel you have credits or need a few questions answered? Give Jeff Brown a call at 1-800-585-4488 or email him at [email protected]

Thanks for reading and cheers to your success,